How we define Multi-Unit
5 or more units per building
1-4 units per building
What is my return?
The return on investment (ROI) comes from 4 different sources:
Passive market appreciation
Forced appreciation through renovations
This model has been proven time and time again and typically allows investor capital to be returned in full between years 5 & 7 depending on the deal. In some cases, the profits of the building allow for it to be sooner. Using a long term buy and hold strategy, returns can be considered infinite once the investor capital has been returned in full.
Some of these we can control through an optimization plan. We look at the performance of the building and take every opportunity to reduce expenses and increase cash flow.
We do not budget for market appreciation in the profit margin as this is out of our control, thus creating the safest possible investment we can offer to our investors.
Staying inside of what we can control and creating a detailed plan to optimize building performance we are confident investors can be paid back by the predetermined time frame or sooner and provide double digit returns going forward once all original capital invested is paid back.
What happens if the market crashes?
Unlike residential properties that have the potential to fluctuate drastically with the market; commercial properties are less affected because their value is heavily based on the buildings income and expenses.
If the market crashes do the rents crash as well?
Rents may decline slightly but people still need a place to live and will continue paying rent.
Having vacancies in a multi unit apartment building is less risky than a residential rental.
In the event of 1 vacancy, would you rather be out 50% of rental income in a duplex or 8.3% in a 12-unit apartment?
What is the risk?
As with any investment there is always risk involved. We have a power team of 14 active investors with a combined real estate value of $180,000,000.
We purchase multi-unit properties (12-36 units) with investor capital. It is our #1 priority to pay investors capital back first and foremost before taking any operating profits for ourselves.
Depending on the building, investor ownership is between 40-60% Joint venture opportunities allow people to participate in bigger deals together.
Buy and hold strategies are essential for creating long-term wealth through passive income streams.